Good morning New York,
FT ALPHAVILLE
Margins to save themselves: Dan cites Morgan Stanley research which notes that European stocks are no longer cheap and that valuations are starting to look "somewhat full". Nevertheless there is some hope and it comes in margins.
How I learned to stop worrying and love the bubble: Izzy cites Paul Krugman's latest on secular stagnation and the idea that bubbles are coming to our rescue by inadvertently boosting employment.
China's plenum: the bloody versus boring debate: David cites Nomura's equity analysts who suggest the ongoing battle against corruption in China could provide some excitement at this year's third plenary session of the 18th Party Congress, which is set to take place in November.
I see your millisecond study, and raise you my millisecond study: Asash Massoudi reports on Nanex's observation that trade data showed that asset prices in New York and Chicago moved at exactly 2pm last Wednesday, when the Federal Reserve released its decision on monetary policy and the fact that that would not have been possible unless the data was transmitted to servers located in Chicago. But should Nanex's claims be taken seriously?
Stock-taking the economy: Izzy looks at attempts to connect the abstracted financial value system with the world of tangible world of real stuff. What will it mean when almost everything we own is digitised?
NEWS
George Osborne acts over housing boom fears: George Osborne is to give the Bank of England an emergency brake on the government's controversial Help to Buy scheme, enabling it to intervene if there are signs it is creating a housing boom. A new survey from Nationwide on Friday morning showed prices in September rising 0.9% on last month, taking the annual rate to 5 per cent – the fastest pace in more than three years. (Financial Times)
Japan CPI grows fastest in almost 5 years: Japanese consumer price inflation increased 0.9 per cent year on year in August, its biggest annual rise since November 2008, as the government of the deflation-wracked country continued its pursuit of annual CPI growth of 2 per cent. (Financial Times)
Alitalia approves €100m capital increase: Alitalia approved a capital increase of at least €100m on Thursday as Italy's lossmaking airline called on its shareholders and creditors to keep the company going until negotiations are resolved that could lead to a foreign takeover. (Financial Times)
Swaps rules worry industry: Banks, brokers and investors are warning of potential turmoil in a major part of the derivatives market on Oct. 2, when new US rules kick in governing how instruments known as swaps are traded. (Wall Street Journal)
Dimon at DoJ for $11bn JPMorgan settlement talks over mortgage securities: "JPMorgan Chase chief executive Jamie Dimon met US attorney general Eric Holder at the Department of Justice in Washington on Thursday, as the US bank looks to settle claims relating to mispackaged mortgage securities for $11bn." (Financial Times)
Obama and Republicans remain poles apart as twin crises loom: "Days from the first deadline in a series of cascading budget crises, President Barack Obama and his Republican opponents remain far apart on resolving their latest stand-off over the reach of government, symbolised by his health reforms." (Financial Times)
Rabobank to settle over Libor: The expected settlement with US, UK and Dutch authorities is forecast to be less than the £390m paid by the Royal Bank of Scotland in February. (Financial Times)
Regling questions need for debt forgiveness in Greece: He "said that the targets for lowering Greece's debt that were central to its latest rescue deal were "meaningless." (WSJ)
Irish house prices rise at fastest pace since property crash: The value of Dublin homes surged 10.5 per cent in the year to the end of August, Ireland's statistics office said on Thursday. However, when Dublin sales are excluded, national prices fell by 2.6 per cent in the 12 months to the end of August. (Financial Times)
Maersk calls bottom of trade cycle: The world's biggest container shipping line by market share said it believed the downturn in trade had bottomed out and predicted demand for global containers would grow by 4-6 per cent in 2014 and 2015, up from recent forecasts of 2-3 per cent for this year. (Financial Times)
JC Penny to raise $1bn: "J.C. Penney moved to raise as much as $1 billion by selling stock, boosting its cushion of cash ahead of what could be a hard-fought holiday season." It said it would sell up to 92.6 million shares in a public offering underwritten by Goldman. (WSJ)
US money market funds in French surge: French banks accounted for over half of all eurozone bank lending done by the 10 biggest US money market funds at the end of last month. (Financial Times)
Markets: Oil prices were lower as the US strikes a deal with Russia and even starts talking to Iran. But the overall market mood was cautious because the Americans appeared unable to negotiate successfully with each other. The FTSE All-World equity index was up less than 0.1 per cent, gold was adding $3 to $1,326 an ounce as the dollar index and US bond prices nudged lower. US index futures showed the S&P 500 easing by 2 points to 1,697. Brent crude was down 39 cents to $108.82 a barrel. The oil benchmark traded above $117 in August when fears built that a US strike on the Syrian government's military could inflame Middle East tensions and compromise supplies. Lingering worries about the west's attempts to hobble Iran's nuclear programme provided further underpinning to the price of crude. However, an agreement between the US and Russia on removing Syria's chemical weapons and the start of historic talks between Washington and Tehran have reduced oil's conflict premium. (Financial Times)
